TripAdvisor Inc (TRIP)
Financial leverage ratio
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Total assets | US$ in thousands | 2,561,000 | 2,733,000 | 2,779,000 | 2,738,000 | 2,537,000 | 2,636,000 | 2,734,000 | 2,684,000 | 2,569,000 | 2,565,000 | 2,612,000 | 2,372,000 | 2,289,000 | 2,312,000 | 2,387,000 | 2,232,000 | 1,969,000 | 1,996,000 | 2,249,000 | 2,427,000 |
| Total stockholders’ equity | US$ in thousands | 943,000 | 944,000 | 857,000 | 825,000 | 871,000 | 823,000 | 781,000 | 808,000 | 861,000 | 813,000 | 796,000 | 767,000 | 789,000 | 794,000 | 779,000 | 785,000 | 886,000 | 908,000 | 912,000 | 1,027,000 |
| Financial leverage ratio | 2.72 | 2.90 | 3.24 | 3.32 | 2.91 | 3.20 | 3.50 | 3.32 | 2.98 | 3.15 | 3.28 | 3.09 | 2.90 | 2.91 | 3.06 | 2.84 | 2.22 | 2.20 | 2.47 | 2.36 |
December 31, 2024 calculation
Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $2,561,000K ÷ $943,000K
= 2.72
The financial leverage ratio measures the extent to which a company utilizes debt to finance its operations, indicating the proportion of a company's assets that are financed by debt rather than equity.
Looking at the data provided for TripAdvisor Inc, we observe fluctuations in the financial leverage ratio over the reporting periods. In March 2020, the ratio stood at 2.36, suggesting that the company had a higher proportion of debt in its capital structure relative to equity.
The ratio increased steadily over the next few quarters, reaching a peak of 3.50 in June 2023, indicating a higher reliance on debt financing during that period. This may reflect strategic decisions to leverage debt for growth or operational needs.
Subsequently, the financial leverage ratio decreased to 2.72 by December 2024, indicating a reduction in the relative amount of debt used to fund operations compared to equity.
Overall, the trend in TripAdvisor Inc's financial leverage ratio demonstrates varying levels of debt utilization across different time frames, which could have implications for the company's financial risk and flexibility in managing its capital structure. Investors and stakeholders may monitor these changes to assess the company's ability to meet its financial obligations and its overall financial health.
Peer comparison
Dec 31, 2024